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Steven Terner Mnuchin was sworn in as the 77th Secretary of the Treasury on February 13, 2017. As Secretary, Mr. Mnuchin is responsible for the U.S. Treasury, whose mission is to maintain a strong economy, foster economic growth, and create job opportunities by promoting the conditions that enable prosperity at home and abroad.

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Treasury Sanctions Individuals and Entities for Sanctions Evasion and Other Activities Related to Russia and Ukraine

12/22/2015

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​Underscores U.S. Commitment To Work With The EU To Maintain The Efficacy Of Existing Sanctions Until Russia Fully Complies With Its International Obligations With Respect To Ukraine

WASHINGTON – To maintain the efficacy of existing sanctions, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) today designated and identified dozens of individuals and entities under four executive orders (E.O.s) related to Russia and Ukraine. Today’s action is part of OFAC’s continued effort to counter attempts to circumvent these sanctions, to further align U.S. measures with those of its international allies, and to provide additional information to assist the private sector with sanctions compliance.

“It is critical that Russia takes the steps necessary to comply with its obligations under the Minsk Agreements and to ensure a peaceful settlement of the conflict in Ukraine,” said John E. Smith, Acting OFAC Director. “By more closely matching our designations with those of our international partners and thwarting attempts to evade sanctions¸ we are once again demonstrating the United States’ unwavering resolve to pressure Russia to respect the security and sovereignty of Ukraine.”

In today’s action, OFAC named 34 individuals and entities under Ukraine-related sanctions authorities. This includes 14 individuals and entities linked to those that have engaged in serious and sustained evasion of existing sanctions or are 50 percent or more owned by a designated entity; six separatists designated for threatening the security or stability of Ukraine; two former Ukrainian government officials for being complicit in the misappropriation of public assets and/or threatening the security or stability of Ukraine; and 12 entities for operating in the Crimea region of Ukraine. OFAC also identified a number of subsidiaries that are owned 50 percent or more by the previously-designated VTB Bank, Sberbank, and Rostec.

Today’s steps support the U.S. commitment to seek a diplomatic resolution to the crisis in Ukraine by maintaining our sanctions on Russia. Those sanctions will not begin to be rolled back until Russia fully implements its commitments under the Minsk Agreements, including the return to Ukraine of control of its side of the international border with Russia. These steps also demonstrate our sustained commitment to a policy of non-recognition with respect to Russia’s purported annexation of Crimea, and our intent to maintain Crimea-related sanctions until Russia ends its occupation of the peninsula. A number of the individuals and entities designated today have also been previously designated by the European Union (EU), underscoring continued trans-Atlantic unity in responding to Russia’s actions in Ukraine.

Designations Regarding Sanctions Evasion (E.O. 13661)

Today’s action targets 14 individuals and entities pursuant to E.O. 13661, which authorizes sanctions on, among others, any individual or entity that is owned or controlled by, or that has supported, an individual or entity previously designated under this E.O. These sanction targets are linked to designated persons Gennady Timchenko, Arkady Rotenberg, Boris Rotenberg, Kalashnikov Concern, and Izhevsky Mekhanichesky Zavod JSC (also known as Baikal), all of whom have engaged in serious and sustained sanctions evasion.

The following eight individuals and entities are owned or controlled by, provide material support to, and/or are acting for or on behalf of, the previously designated Gennady Timchenko and his network: Sven Olsson, Avia Group Terminal Limited Liability Company, Transservice LLC, Lerma Trading, LTS Holding Ltd., Maples S.A., Fentex Properties Ltd. and White Seal Holdings. The following three entities are owned or controlled by the previously designated brothers Arkady and Boris Rotenberg: Volgogradneftemash, Moskovskiy Oblatstnoy Bank, and Investment Republic Bank LLC. Finally, the following three individuals are being designated for acting for or on behalf of the previously designated entities Kalashnikov Concern and Izhevsky Mekhanichesky Zavod JSC (also known as Baikal): Eduard Ioffe, Vakhtang Karamyan, and Tatiana Chernykh.

Designations Regarding Separatists (E.O. 13660)

Today’s action also targets six Ukrainian separatists pursuant to E.O. 13660, who are already on the EU sanctions list, for being responsible for or complicit in actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; for acting for or on behalf of previously designated groups as leaders of such entities; or for asserting governmental authority over a part or region of Ukraine without the authorization of the Government of Ukraine. This action is being taken as part of an ongoing effort to hold accountable those who are responsible for violations of Ukraine’s sovereignty and territorial integrity.

Serhiy Kozyakov has formerly served as the so-called head of the self-proclaimed Luhansk People’s Republic (LPR) Central Electoral Commission and is currently the “minister of justice” of the LPR, and was listed by the EU for being responsible for organizing the so-called “elections” of November 2, 2014 in the LPR. These “elections” were not authorized by the Government of Ukraine and were in breach of Ukrainian law. Kozyakov is being designated for being responsible for or complicit in actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; acting for or on behalf of the LPR; and asserting governmental authority over a part or region of Ukraine without the authorization of the Government of Ukraine.

Vladyslav Deynego has served as a so-called deputy head of the People’s Council of the LPR and was listed by the EU for actively supporting actions and policies which undermine the territorial integrity and independence of Ukraine. Deynego is being designated for being responsible for or complicit in, or engaging in, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine and acting or purporting to act for or on behalf of the LPR.

Sergey Tsyplakov is the current “prime minister” of the LPR and has served as the so-called head of the People’s Militia of Donbass, and was listed by the EU for being one of the leaders of the radical organization People’s Militia of Donbass and for taking an active part in the seizure of a number of state buildings in the Donetsk region. Tsypkalov is being designated for being responsible for or complicit in, or having engaged in, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; asserting governmental authority over a part or region of Ukraine without the authorization of the Government of Ukraine; and acting or purporting to act for or on behalf of the LPR and the People’s Militia of Donbass.

Vasily Nikitin is currently “deputy prime minister” for the LPR and has previously served as the so-called prime minister for the LPR and helped to organize the LPR’s illegal May 2014 referendum in favor of independence. Nikitin is being designated for being responsible for or complicit in, or having engaged in, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; asserting governmental authority over a part or region of Ukraine without the authorization of the Government of Ukraine; and acting or purporting to act for or on behalf of the LPR.

Aleksandr Kofman has served as the so-called foreign minister and first deputy speaker of the so-called “legislature” of the self-proclaimed Donetsk People’s Republic (DPR). He also stood as a candidate in the so-called “elections” of November 2014, which were in breach of Ukrainian law. Kofman is being designated for being responsible for or complicit in, or having engaged in, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine; asserting governmental authority over a part or region of Ukraine without the authorization of the Government of Ukraine; and acting or purporting to act for or on behalf of the DPR.

Andrei Rodkin has served as the so-called representative of the DPR in Russia. He also founded the Union of Donbass Volunteers, which supports Russians who fought in Ukraine. Rodkin is being designated for being responsible for or complicit in, or having engaged in, actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine and acting or purporting to act for or on behalf of the DPR.

Designations Regarding Former Yanukovych Officials (E.O. 13660)

Today’s action also targets two former Yanukovych regime officials pursuant to E.O. 13660, which authorizes sanctions against, among others, those threatening the security and stability of Ukraine, and those misappropriating public assets. These individuals are Vitaliy Zakharchenko and Dmytro Tabachnyk, who are already on the EU sanctions list. Today’s action supports the Ukrainian government’s efforts to target the misappropriation of state assets. These designations also underscore our efforts to align our sanctions list with the EU, to the extent possible.

Vitaliy Zakharchenko issued the order on February 20, 2014 to use firearms against peaceful Euro-Maydan protestors in Ukraine, which resulted in dozens of deaths. He is being designated for being responsible for or complicit in actions or policies that threaten the peace, security, stability, sovereignty, or territorial integrity of Ukraine, and for materially assisting former Ukraine President Viktor Yanukovych, pursuant to E.O. 13660 on March 17, 2014.

Dmytro Tabachnyk is accused by Ukrainian officials of the appropriation or embezzlement of funds under of the Criminal Code of Ukraine, and is being designated for engaging in the misappropriation of state assets of Ukraine.

Designations Regarding Crimean Entities (E.O. 13685)

Today’s action also targets 12 entities pursuant to E.O. 13685, which authorizes sanctions on, among others, any person determined to be operating in the Crimea region of Ukraine in violation of E.O. 13685. Targeting these entities for operating in the Crimea region of Ukraine underscores the United States’ commitment to opposing Russia’s occupation and attempted annexation of Crimea.

These entities include three Russian banks and one Crimea-based bank (Joint Stock Company Genbank, Open Joint Stock Company Krasnodar Regional Investment Bank, Open Joint Stock Company Commercial Bank Verkhnevolzhsky, and Sevastopolsky Morskoy Bank); a Crimean state-owned enterprise engaged in air transportation (State Enterprise Universal-Avia); a distillery (the Crimean Enterprise Azov Distillery Plant); three wineries (State Concern National Production and Agricultural Association Massandra, State Enterprise Factory of Sparkling Wine Novy Svet, and State Enterprise Magarach of the National Institute of Wine); a health resort (Resort Nizhnyaya Oreanda); a Russian engineering company (Technopromexport); and a film production studio (the Yalta Film Studio).

Six of the 12 entities were previously designated by the EU. These six entities are: State Enterprise Universal-Avia, the Crimean Enterprise Azov Distillery Plant, State Concern National Production and Agricultural Association Massandra, Resort Nizhnyaya Oreanda, State Enterprise Factory of Sparkling Wine Novy Svet, and State Enterprise Magarach of the National Institute of Wine.

Today, OFAC also identified a number of subsidiaries of VTB Bank, Sberbank, and Rostec as being owned 50 percent or more by their respective parent entities. The two banks and one defense company were previously sanctioned pursuant to E.O. 13662 in September 2014. The subsidiaries identified today were already subject to the same financing restrictions as their respective parent entities per OFAC’s Revised Guidance on Entities Owned by Persons Whose Property and Interests in Property Are Blocked (“50 percent rule guidance”), which can be found here. These identifications will help the public more effectively comply with the sanctions on VTB Bank, Sberbank, and Rostec.

For the identifying information related to today’s action, click here.